Federal Contracts Training Center

The Department of Homeland Security has issued a final rule amending the Homeland Security Acquisition Regulation to establish guidelines for prohibiting awards of Federal Protective Service contracts for guard services to business concerns controlled by individuals convicted of serious felonies. The rule implements provisions of the Federal Protective Service Guard Contracting Reform Act of 2008, and finalizes, with changes, the proposed rule issued on March 17, 2009 (¶72,315.02). The rule generally defines serious felonies as those which cast doubt on the integrity or business ethics of a business concern, or are of a nature inconsistent with the mission of FPS. The rule requires offerors to disclose whether or not they are a business concern owned, controlled, or operated by an individual convicted of a felony. It also provides that after the award of a contractual instrument that may result in the issuance of task orders, calls, or contract extension options, the contractor must provide notice of a felony conviction of any individual who owns, controls, or operates the business concern. The rule allows the contracting officer to review the basis for the award request and assess the risk associated with the felony conviction. The rule redesignates sections in HSAR Subpart 3009.1, and adds HSAR 3009.171, and HSAR 3052.209-76. For the text of the rule, which goes into effect December 16, 2009, see ¶72,300.12.